EVEREADY IND. 2018-19 Annual Report Analysis
Mon, 30 Sep

EVEREADY IND. has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

EVEREADY IND. Income Statement Analysis

  • Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY19 as against 7.2% in FY18.
  • Depreciation charges increased by 13.5% and finance costs increased by 86.9% YoY, respectively.
  • Other income grew by 79.0% YoY.
  • Net profit for the year declined by 10.0% YoY.
  • Net profit margins during the year declined from 3.6% in FY18 to 3.1% in FY19.

EVEREADY IND. Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 14,564 15,066 3.5%
Other income Rs m 197 353 79.0%
Total Revenues Rs m 14,761 15,420 4.5%
Gross profit Rs m 1,044 1,011 -3.2%
Depreciation Rs m 192 218 13.5%
Interest Rs m 293 548 86.9%
Profit before tax Rs m 756 598 -20.9%
Tax Rs m 224 120 -46.7%
Profit after tax Rs m 532 478 -10.0%
Gross profit margin % 7.2 6.7
Effective tax rate % 29.7 20.0
Net profit margin % 3.6 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FREE Event: Discover Your First Stock for a Potential Rs 7 Crore in Long-term Wealth

EVEREADY IND. Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 6 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 3.9%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 855 million during FY18, a growth of 145.7%.
  • Current assets rose 20% and stood at Rs 7 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 12 billion as against Rs 10 billion during FY18, thereby witnessing a growth of 17%.

EVEREADY IND. Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 3,427 3,759 9.7
 
Current Liabilities Rs m 5,840 6,069 3.9
Long-term Debt Rs m 855 2,100 145.7
Total Liabilities Rs m 10,287 12,073 17.4
 
Current assets Rs m 6,245 7,495 20.0
Fixed Assets Rs m 3,603 3,474 -3.6
Total Assets Rs m 10,287 12,073 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EVEREADY IND. Cash Flow Statement Analysis

  • EVEREADY IND.'s cash flow from operating activities (CFO) during FY19 stood at Rs 701 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 44.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 524% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 823 million from the Rs -560 million net cash flows seen during FY18.

EVEREADY IND. Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 808 701 -13.3%
Cash Flow from Investing Activities Rs m -998 -1,446 -
Cash Flow from Financing Activities Rs m -370 1,567 -
Net Cash Flow Rs m -560 823 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for EVEREADY IND.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an decline from the EPS of Rs 7.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 45.2, stands at 9.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 200.4 207.3
TTM Earnings per share Rs 7.3 6.6
Diluted earnings per share Rs 7.3 6.6
Price to Cash Flow x 4.5 4.7
TTM P/E ratio x 9.2 9.2
Price / Book Value ratio x 7.7 5.5
Market Cap Rs m 3,286 3,285
Dividends per share (Unadj.) Rs 1.5 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for EVEREADY IND.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY19, from 1.1x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.1x during FY19, from 3.6x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 12.7% during FY19, from 15.5% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 19.6% during FY19, from 24.5% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 8.5% during FY19, from 8.0% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.1 1.2
Debtors’ Days Days 30 33
Interest coverage x 3.6 2.1
Debt to equity ratio x 0.2 0.6
Return on assets % 8.0 8.5
Return on equity % 15.5 12.7
Return on capital employed % 24.5 19.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how EVEREADY IND. has performed over the last 5 years, please visit here.

EVEREADY IND. Share Price Performance

Over the last one year, EVEREADY IND. share price has moved down from Rs 197.4 to Rs 45.2, registering a loss of Rs 152.2 or around 77.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 26,011.3 (down 0.5%). Over the last one year it has moved up from 19,134.3 to 26,011.3, a gain of 6,877 points (up 35.9%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

(To know more, check out historical annual results for EVEREADY IND. and quarterly results for EVEREADY IND.)